Home products company Kimberly-Clark (NYSE:) will report earnings before the bell tomorrow. Here’s what to expect.
Kimberly-Clark reported revenue of $4.97 billion in the latest quarter, unchanged year over year, below analysts’ expectations by 0.5%. It was a weak quarter for the company, with a loss in analysts’ operating margin and EPS estimates due to $170 million in currency headwinds from developing markets experiencing hyperinflation. Regarding organic revenue growth, the Personal Care segment carried the weight, contributing 6% growth compared to 0% and -1% for Consumer Tissue and Professional.
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This quarter, analysts expect Kimberly-Clark’s revenue to decline 2.1% year over year to $5.09 billion, a deceleration from the 2% year-over-year increase in revenue the company reported in same quarter last year. Adjusted earnings are expected to be $1.64 per share.
Analysts following the company have become increasingly optimistic about the company’s earnings, with revenue estimates seeing six upward revisions in the past thirty days. The company has missed Wall Street revenue estimates three times in the past two years.
Looking at Kimberly-Clark’s competitors in the consumer staples segment, some of them have already reported their first quarter earnings results, giving us an idea of what we can expect. WD-40 reported revenue growth of 6.8% year-over-year, missing analysts’ estimates of 0.8%, and Procter & Gamble reported revenue rising 0.6% year-over-year, missing forecasts. analyst estimates of 1.2%. WD-40 fell 4% on results, while P&G held steady on results.
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Read the full analysis of WD-40 and Procter & Gamble results on StockStory.
Inflation has progressed toward the Fed’s 2% target at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market swings between optimism and pessimism about rate cuts amid mixed inflation data, and while some consumer staples stocks have performed slightly better, they were not spared, with the share price falling. 4.6% in the last month. Kimberly-Clark is up 1.5% over the same period and is heading to earnings with an analyst price target of $131.8, compared to the stock price of $127.